Some of the requirements that one has to fulfill before he or she gets a loan on an insurance policy:
Age of applicant: The loan applicant should be 18-90 years for him/her to qualify for an insurance loan.
Minimum surrender value: Bear in mind is the minimum amount of money that one would receive if he or she cashed in an insurance policy wholesale. The amount which should be added to this sum should not be less than Rs. 30,000/- Every manufacturer must see that this figure is reached by the company, because otherwise it will not be able to generate sufficient profits to cover the costs incurred in its business.
Cash value of insurance policy: Cash value also known as face amount or surrender value may be defined as the total sum of money which is accessible in a permanent life insurance product with cash-investment element. This value is then calculated in order to establish the given aspect which concerns the experience and the potential future contribution of an insurance policy throughout the years.
Employment: Applicant can be a company’s employee having a fixed wage or can be a freelancer.
Loan amount: Insurance loan depends upon the cash value of insurance policy and minimum surrender value of insurance policy.
Credit score: In case of this loan, credit score of the applicant is not of importance since the deposited amount acts as the collateral.
Documents required for applying an insurance loan
Photo: A latest passport size photograph of the policy holder.
Identity proof: Aadhar card, Pan card, Passport, Voter ID or driving licence can be used as a valid identity proof.
Insurance proof: All important documents regarding and proving that the insurance policy is valid and belongs to the applicant must be produced. Documents showing updated cash value as well as minimum surrender value are also required.
Bank account proof: A cancelled cheque or bank account statements with account holder’s name and identity.
Additional documents: As required by the lending organization.
Minimum rate of interest
The minimum rate of interest in this case depends on policy provider, as well as terms of your policy.
